During week 34, Indian semis trades were better for both sponge and billet markets. Prices for both the materials had moved up significantly. Major price rise of INR 200-900/MT in billet was seen in west and east regions. Meanwhile, sponge offers gained by INR 200/MT in central and east India – the key suppliers of sponge across India. However, offers in south India remained stable due to sluggish demand.
As per trade participants, semis offers increased due to short supply of sponge and improved trade activities.
Secondary Pig iron manufacturers kept offers unaltered in week 34 due to rising sponge prices and subdued trade activities.
Week 34 dynamics
1. 78-80 FeM C-DRI offers are assessed at INR 12,600/MT (+200) ex-Durgapur, INR 11,250/MT (+50) ex-Rourkela, INR 12,450/MT (+150) ex-Raipur and INR 12,100/MT (-50) ex-Bellary. Price changes indicated are weekly.
2. 78-80 FeM P-DRI prices increased to INR 10,550-12,800/MT across major markets.
3. 125×125 mm billet prices are evaluated at INR 19,650/MT (+150) in Durgapur, INR 19,000/MT (+250) in Rourkela, INR 19,600/MT (+50) in Raipur, INR 21,800/MT (+900) in Mumbai, INR 21,350/MT (+50) in Chennai and INR 21,000/MT (0) in Hyderabad.
4. Indian domestic & global iron ore prices were firm during week 34. Global iron ore offers are assessed at USD 61/MT, CNF China.
5. Pellet offers in major markets gained momentum due to limited suppliers in domestic market amid increasing export. Current offers are INR 3,400/MT ex-Jharsuguda and INR 4,000/MT ex-Raipur.
6. Melting scrap offers in west and south India changed by around INR 500/MT.
Week 35 outlook
1. Semis offers may remain volatile on account of rising sponge prices and subdued trade activities in ingot/billet.
2. Indian iron ore and pellet prices are anticipated to move up slightly, looking at increased pellet export and rising sponge prices day-by-day.
3. Indian secondary Pig iron manufacturers may maintain offers at current levels. The manufacturers are also waiting for NINL’s fresh price circular.
4. Domestic scrap offers may come under pressure as most of the induction furnaces (IF) in west and south India shifted production in night shift only. This may put selling pressure on domestic scrap suppliers.
Snapshot of Indian raw material and semis prices as on 20 Aug’16
| Products | Markets | Prices in INR/MT | W-o-W |
| Billet 125*125 MM | ex-Mumbai | 21,800 | + 900 |
| Scrap HMS (80:20) | ex-Mumbai | 15,100 | 0 |
| Sponge CDRI 80 FeM | ex-Raipur | 12,450 | + 150 |
| Sponge PDRI 80 FeM | ex-Raipur | 11,300 | + 100 |
| Pig iron Steel grade | ex-Raipur | 17,200 | + 100 |
| Pellet Fe 63%, 6-20 mm | ex-Durgapur | 3,800 | + 75 |
| Iron ore Fe 62%, 10-30 mm | ex-Mines, Joda loaded to wagon | 2,550* | 0 |
Basic prices, all taxes will be applicable
*Incld Royalty, DMF & NMET
Source: SteelMint Research
Leave a Reply